Latest News on Dividend and Preferred Stocks

Purchases and Sales in Model Portfolios

We had mentioned last week we would be making some purchases this week as well as executing a sale in the Blended Income Model Portfolio and we have done so yesterday. We have purchased full positions in 2 fixed-to-floating rate perpetual preferreds.  We have been, and continue to be, reluctant to purchase perpetual preferreds up […]

Global Indemnity LTD Floats a New Note Issue

Specialty insurer and reinsurer Global Indemnity LTD (NASDAQ:GBLI) has sold a new subordinated note issue with a long duration maturity. GBLI is a Cayman Islands based insurer that insures specialty risks such as medical and professional liability insurance, collectibles insurance and property and casualty insurance for small businesses.  While the company is not a large […]

Plans for the Days Ahead

So the Fed meeting is happening today and tomorrow morning and we are awaiting the announce on the 1/4% rate hike.  Then for the big news–what Chair Yellen has to say after the meeting–will she sound hawkish on rates or will she give the typical dovish sounding drivel that would be the norm? So here […]

Energy Retailer Spark Energy Inc. Sells a Fixed-to-Floating Rate Preferred

In what has become a continuing parade of companies stepping up and selling fixed-to-floating rate preferreds, energy retailer Spark Energy Inc (NASDAQ:SPKE) has joined with a new offering. The company has sold a 8.75% fixed-to-floating rate preferred issue that has a very lucrative base rate starting in 2022 when the coupon beings to float. Spark Energy […]

Anxiously Awaiting the Last Nail in the Coffin

It has been a rather rough ride the last 5-6 market days as investors finally figured out that interest rates will be raised by 1/4% next Wednesday when the FOMC meeting ends.  The hike isn’t our big  concern it is what Chair Yellen will say after the rate hike is announced. On February 16th I […]

Another Fixed-to-Floating Preferred Sold by a Mortgage REIT

Two Harbors Investment Corp (NYSE:TWO) becomes the 3rd mREIT in as many weeks to sell a fixed to floating rate preferred issue.  Interestingly all 3 issues have very similar terms. TWO has sold 5,000,000 shares of 8.125% fixed-to-floating rate preferreds with the typical preferred stock terms. Shares are cumulative in respect to dividends,  redeemable at […]

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PennyMac Mortgage Investment Corp Sells a Fixed-to-Floating Rate Issue

mREIT PennyMac Mortgage Investment Corp (NYSE:PMT) has sold a fixed-to-floating rate preferred stock with a fairly tasty initial coupon of 8.125%. The terms of the issue are the normal terms for preferreds as shares are perpetual and cumulative in respect to dividends.  The optional redemption period, in which the company can redeem the shares at […]

Asset Manager Apollo Global Management LLC Sells a Quality Preferred Issue

Apollo Global Management LLC (NYSE:APO) has sold a high quality, non-cumulative preferred stock with a coupon of 6.375%. APO is a large manager of assets with total assets under management of $192 billion dollars. They have grown assets under management at a annual rate of 22% since 2005.  Apollo holds dozens of companies in their […]

Will Markets Be Blindsided with an Interest Rate Hike?

You can tell that we are having serious concerns about the possibilities of an interest rate hike on March 15th (the end of the March FOMC meeting) as this is the 2nd time in 2 weeks we have written about interest rates.   We have been rooting for a rate hike for some time now […]

mREIT Chimera Investment Corp Sells a Nice Preferred Issue

Longtime readers know that we are not big investors in mREITs (mortgage REITs), in particular the common shares.  Additionally we have seldom owned the preferred shares of the mREITs, but that has more to do with our aversion to perpetual preferreds than anything else. Chimera Investment Corp, (NYSE-CIM) has sold a fixed-to-floating rate preferred, that […]

We Love It and You Might Too

Ok, we’ll admit it right up front.  Sometimes we are lazy and don’t check our investments for days on end.  There are also months where we might make only 1 buy or 1 sell of a security.  We have written before that it is our goal to NOT trade unless we have a real reason […]

The Coming Interest Rate Hike

We thought it was time to revisit the topic of the coming interest rate hike.  Certainly it is likely there is a rate hike coming, but when it will happen no one knows for sure. Earlier this week we watched Chair Yellen testify to congress and at first it seemed that she wanted to raise […]